My 2.2 cents (GST Inc.)

It is a real prick when your opinions are taxed. Australia least powerful political blog. (Plus any other crap I want to talk about.)

Friday, December 09, 2005

Telstra Share prices keeps going down

There are about ~2 million Telstra Shareholders directly who bought shares in the orginial two floats, ~9 million indirectly via superfunds and ~20 million indirectly via Australia Citizenship. The orginial price of the float was $2.70 per share if I remember rightly way back in 1998 and the second float was over $7 two years later. About 10 minutes ago, the price was $3.84. The people who bought in the second float that sold 16% clearly got screwed and those who got into the first 33% have really not made a good investment. The funniest thing is the government got more money from the second float than the first despite the fact that less than half as many shares were offered. The governments holding of 51% is now worth only $24 billion, yet it is bring in $2 billion a year meaning the return is also 9%. Good luck getting that much of a return of any other investment. So now is not the time to sell the rest of Telstra.

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